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07-09-2016, 09:05 PM
China: Golden Opportunity for Multi-Level Marketing (MLM)
By Mark Schaub
July 18, 2016
In a short time, China has moved from being the world’s workshop to its most lucrative consumer market. China is a market with 1.4 billion consumers and in 2013, Chinese consumers spent nearly half of their annual salary on consumer products. These consumers are increasingly spending big on health supplements, cosmetics, weight loss products, vitamins and other recurring, affordable luxury type products for better quality of life.
China does not only have the world’s biggest consumer market but this market is expected grow by USD 2.3 trillion from 2015 to 2020 – Over the course of five years this growth will roughly equal a market 1.3 times the size of Germany or the UK.
Even better news for MLM companies is that retail growth rates for their types of product are exploding – health supplements have grown by 25.2% in the years up to 2014, and cosmetics currently have a compound annual growth rate of 12%, weight loss products 5%, and vitamins 9.7%.
However, China is not just a massive market for MLM. In many ways, Chinese society makes for fertile ground for MLM with its close-knit communities of friends and family that dominate social interactions and life. As such, traditional advertising is much less effective in China than in the West as word of mouth and similar advertising through channels such as “friends’ circles” and popular social networking applications like Wechat are far more effective. This culture creates the perfect environment for MLM and network marketing which is primarily based on affiliates having a close network of friends and family.
Direct-selling in China is BIG and is continuing to grow at a rate 3 times the level of growth in the US, not accounting for the recent liberalization of direct-selling for international companies which will lead to even more accelerated growth. Hu Yuanjiang, secretary-general of the Direct Selling Expert Committee of the China Marketing Association has indicated that growth in the industry is predicted to keep increasing to hit RMB 1 trillion (USD165 billion) in less than 10 years.
International companies have a great opportunity to take a major slice of this market due to their cutting edge products, management experience, established brands and the trust that Chinese consumers have in direct sales products such as cosmetics, nutritional and supplement goods.
The question is how to take advantage of this opportunity......................................................
http://homebusinessmag.com/blog/direct-s...eting-mlm/
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By Mark Schaub
July 18, 2016
In a short time, China has moved from being the world’s workshop to its most lucrative consumer market. China is a market with 1.4 billion consumers and in 2013, Chinese consumers spent nearly half of their annual salary on consumer products. These consumers are increasingly spending big on health supplements, cosmetics, weight loss products, vitamins and other recurring, affordable luxury type products for better quality of life.
China does not only have the world’s biggest consumer market but this market is expected grow by USD 2.3 trillion from 2015 to 2020 – Over the course of five years this growth will roughly equal a market 1.3 times the size of Germany or the UK.
Even better news for MLM companies is that retail growth rates for their types of product are exploding – health supplements have grown by 25.2% in the years up to 2014, and cosmetics currently have a compound annual growth rate of 12%, weight loss products 5%, and vitamins 9.7%.
However, China is not just a massive market for MLM. In many ways, Chinese society makes for fertile ground for MLM with its close-knit communities of friends and family that dominate social interactions and life. As such, traditional advertising is much less effective in China than in the West as word of mouth and similar advertising through channels such as “friends’ circles” and popular social networking applications like Wechat are far more effective. This culture creates the perfect environment for MLM and network marketing which is primarily based on affiliates having a close network of friends and family.
Direct-selling in China is BIG and is continuing to grow at a rate 3 times the level of growth in the US, not accounting for the recent liberalization of direct-selling for international companies which will lead to even more accelerated growth. Hu Yuanjiang, secretary-general of the Direct Selling Expert Committee of the China Marketing Association has indicated that growth in the industry is predicted to keep increasing to hit RMB 1 trillion (USD165 billion) in less than 10 years.
International companies have a great opportunity to take a major slice of this market due to their cutting edge products, management experience, established brands and the trust that Chinese consumers have in direct sales products such as cosmetics, nutritional and supplement goods.
The question is how to take advantage of this opportunity......................................................
http://homebusinessmag.com/blog/direct-s...eting-mlm/
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Research, research and research - Please do your own due diligence (DYODD) before you invest - Any reliance on my analysis is SOLELY at your own risk.